Accountants are a vital part of any modern business. Every month your business processes hundreds if not thousands of transactions between both your customers and your B2B suppliers and each one of these transactions stacks up to be part of the whole financial picture for your business. You need someone to keep all these purchases and sales in order, know how much you've made versus how much you've spent, and which expense is applied to which individual budget. Without at least one accountant keeping the books straight, most businesses quickly go belly-up due to an inability to keep an accurate measure of profit to overhead or be prepared for tax season, but that's not all you get when you hire an accountant.
Accountants are Not Robots
There is a very good reason why we haven't outsourced all our accountant jobs to AIs, as there is a lot more to accountancy than just making the numbers line up. A robot can't sort out financial snarls, make sure mistakenly filed expenses are categorized and processed correctly, or learn how to run a business from its experience. An accountant can, among a great many other things.
Smart business owners know that their accountant is more than just someone who keeps the numbers, they are a valuable financial Expert. What else can your accountant do for you other than keeping the books? Let's do a little exploring.
1. Optimize Your Budgets
No one spends more time analyzing your spending habits than your accountant. They handle the receipts for every order of pencils or bag of packing peanuts. They know how much you're spending on breakroom snacks, seasonal inventory, and office services. They are likely to know the ratio between items stocked and items sold and how close your overhead and profits really are.
In other words, this is the person who understands your finances and budget choices the most intimately. If you want to optimize your budget for less waste and more profits, talk to your accountant about where you're overspending and where they think you're underspending to fine-tune your current budget.
2. Repair Financial Mistakes
Have you ever had to deal with a major financial blunder? Maybe an employee didn't get a deposit to the bank on time, accidentally canceled one of your supplier accounts, or caused a check to bounce due to department budget mismanagement. There are ways to sort out these problems with minimal blowback on the company, but you'll need an expert.
More often than not, accountants have connections in the industry and they know how to talk to fellow financial staff members in other companies. Your accountant may be able to help you sort out financial accidents and logistical snarls before they ruin your quarter.
3. Give Advice on How to Grow
Everyone knows that most businesses succeed or fail based on the organization and strategic management of their finances. Small profit businesses make it by reducing overhead while fast-growth businesses make it by keeping profit and growth budget streamlined. Both small business survival strategies require not just the cooperation of your accountant, but their assistance and advice.
If your small business is looking to grow, your accountant can tell you where you have the financial room to do so and help you determine what the budget would need to be for different kinds of growth. Should you add a new department or a new product? Expand the current offices or open a second location? Your accountant will be able to help you answer these questions.
When your company hires an accountant, you're getting a lot more than just someone to keep the books straight. Each accountant is an ally against financial failure, there to not just tell you when things are going well or poorly but to offer advice and insight based on the current and projected state of your finances. Want to make smarter decisions about running your business? Try asking your accountant. For tips and trends in business accounting, contact us! We're accountants!